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ADC 332 

INTRA-NAVY EXCHANGE PRICE BILLING FOR DEPOT LEVEL REPAIRABLES 

(MILSBILLS/FINANCE) 

1. ORIGINATOR: 

a. Service/Agency: Naval Supply Systems Command (NAVSUP)

b. Originator: NAVSUP, Code 141, DSN 430-5712

2. FUNCTIONAL AREA: Finance

3. REFERENCE:

a. DoD 4000.25-7-M, Military Standard Billing System (MILSBILLS)

b. Approved DLMS Change 274, DLMS and DLSS Changes to Support Army Exchange 

Pricing (Supply/Finance/MILSTRIP/MILSTRAP/MILSBILLS) (Staffed as PDC 269)

4. REQUESTED CHANGE: 

a. Title: Intra-Navy Exchange Price Billing for Depot Level Repairables 

b. Description of Change: The purpose of this change is to map the Navy’s current billing 

transactions for depot level repairables (DLRs) under the Navy Carcass Tracking program to the 

DLMS Supplement 810L, Logistics Bill. This change will support the Navy migration to DLMS, and 

will support mapping in a mixed DLMS/MILS environment. 

c. Background. 

(1)The Navy uses a two-tier pricing system for selling Depot Level Repairable material to 

Navy customers. The Navy system is similar to that used by the Army and Air Force, although some of 

the terminology is different. The price applicable to a particular requisition is determined as follows: 

(a) Standard Price. This is the price representing the full value of the DLR item. 

Customers are charged the standard price when a Not Ready For Issue (NRFI) unit (also referred to as 

a ‘Carcass’) is not turned in. 

(b) Net Price. Also referred to as Exchange Price. This price represents the cost of 

repairing a DLR item, and is the price charged to customers when a NRFI unit has been or will be 

turned in. Navy customers indicate on their requisitions whether or not a NRFI unit is available for 

turn in via the Advice Code field. Advice codes 5A, 5D, 5E, 5X, 53, 54, 57, 58, 59 indicate no carcass 

to be returned, and result in standard price billing. Advice codes 5G, 5R, 5S, 5V, 5Y, 52, 56 indicate 

that a carcass will be returned and result in net price (exchange price) billing. 

(2)Requisitions received indicating that a carcass will be returned are tracked in the Navy’s 
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Carcass Tracking System. This system monitors these requisitions and matches them with carcass 

returns as they occur. This system also generates follow ups to customers who have not returned their 

carcasses as promised. Ultimately, the system will trigger an additional charge to the customer if the 

carcass is not returned. Navy uses the term Carcass Charge for this additional billing which represents 

the value between Standard Price and Net (Exchange) Price. This additional billing is also referred to as 

a Delta Bill. If the customer returns the carcass after receiving the Carcass (Delta) Bill, then the 

additional billing is reversed resulting in a Carcass Charge Reversal (Credit Delta Bill). 

(3)The Navy ICP currently uses DLSS/MILSBILLS system for billing. In this system, the 

Navy uses the Sales Price Condition Code to indicate to customers that a particular bill is either Net 

(Exchange) Price (‘B’ in cc 7 of DOCID FA1 or FA2) or Carcass (Delta) Price (‘X’ in cc 7 of DOCID 

FA1 or FA2). Navy customers may also return excess DLRs for credit. The credit can be Standard, Net 

or Carcass value. The Navy also uses the Sales Price condition Code to indicate to customers returning 

DLRs that the amount of credit is either Net or Carcass Price (‘B’ in cc 7 of DOCID FD1 or FD2). 

(4)The Navy’s ERP project currently under development will replace the Navy ICP’s 

DLSS/MILSBILLS billing system with a DLMS based system. However not all of the customers 

receiving DLR bills will be converted to DLMS. The Defense Automated Address System (DAAS) will 

convert Navy DLMS bills back to DLSS/MILSBILLS format for any Navy customers unable to accept 

DLMS formats. DLMS does not authorize use of MILS Sales Price Condition Code, as the intent was 

that 2/IT05/010, Basis of Unit Price could be used to convey that data. However, to achieve 

standardization with DLMS procedures already used by Army for exchange pricing, the Navy desires to 

use a combination of Stock Exchange Code and Type of Bill Code to indicate in the DLMS 810L format 

that the price charged is either Standard, Net or Carcass (Exchange or Delta). This change does not 

impact other Component procedures; however this change may be of value to other Components. 

(5)Procedures. 

(a) Revise DOD 4000.25-7-M Military Standard Billing System (MILSBILLS) 

Manual, Appendix 2.5, Type of Bill Code, and corresponding DLMS dictionary data element as 

follows:. 

Code Description

EP Bill at Exchange Price 

 (Commonly referred to as “Net Price” within Navy) 

DB Bill for the Delta amount (Standard Price minus Exchange Price) 

 (Commonly referred to as “Carcass Charge” within Navy 

RB Credit Bill to reverse a Delta Bill (DB) under Exchange Pricing 

(Commonly referred to as “Carcass Charge Reversal” within Navy 

SC Credit Bill for Serviceable Credit under Exchange Pricing 

 (May be Exchange Price or Delta Price for Navy) 

(b) Revise DOD 4000.25-7-M Military Standard Billing System (MILSBILLS) 

Manual, Appendix 2.7, Sales Price Condition Code, and corresponding DLMS dictionary data element 

as follows: 

 AP2.7 APPENDIX 2.7.

SALES PRICE CONDITION CODE
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NUMBER OF CHARACTERS: One 

TYPE OF CODE: Alphabetic 

EXPLANATION: Indicates the standard unit price indicated is not the 

actual billing unit price used. The actual billing unit 

price is equal to the billing amount divided by the 

quantity. 

Code

Description

B 

Sales price reduced as agreed. The amount billed does not equal the unit 

price extension (quantity times unit price). The actual amount is equal to a 

“discounted” unit price (not shown) extension. 

X Used by Navy. When used on DOCID FA1, indicates that this is an 

additional charge for non-return of a Depot Level Repairable carcass. 

When used on DOCID FA2, indicates that this is a reversal of a previous 

charge for non-return of a Depot Level Repairable carcass. 

 (c) Revise DoD 400.25-7M Military Billing System (MILSBILLS, Chapter 2 new 

paragraph 12 and DoD 4000.25-M Defense Logistics Management System (DLMS) Vol 2 and Vol 5 

in association with the manual updates developed under ADC 274, as follows: 

 C#.##.#. Navy uses a two-tier pricing system for selling Depot Level Repairable material to 

Navy customers. The Navy sells DLRs to other Services at full (standard) price and then provides 

carcass value credit when the carcass is returned. This is the same method the Air Force and Army use 

when selling repairable items to the Navy. The Standard Price is the price representing the full value 

of the DLR item, and is price charged when a Not Ready For Issue (NRFI) unit (also referred to as a 

‘Carcass’) is not turned in. The Net Price (also referred to as Exchange Price) is the price that 

represents the cost of repairing a DLR item, and is the price charged to customers when a NRFI unit 

has been or will be turned in. Navy customers indicate on their requisitions whether or not a NRFI unit 

is available for turn in via the Advice Code, and they are then charged Net or Standard Price 

accordingly. 

 C#.##.#. Requisitions received indicating that a carcass will be returned are tracked in the Navy’s 

Carcass Tracking System. This system monitors these requisitions and matches them with carcass 

returns as they occur. This system also generates follow ups to customers who have not returned their 

carcasses as promised. Ultimately, the system will trigger an additional charge to the customer if the 

carcass is not returned. Navy uses the term Carcass Charge for this additional billing which represents 

the value between Standard Price and Net (Exchange) Price. This additional billing is also referred to 

as a Delta Bill. If the customer returns the carcass after receiving the Carcass (Delta) Bill, then the 

additional billing is reversed, resulting in a Carcass Charge Reversal (Credit Delta Bill). Navy 

customers may also return excess DLRs for credit. The credit can be Standard, Net or Carcass value. 

 C#.##.#. Under DLSS/MILSBILLS billing, the Navy ICP’s use the Sales Price Condition Code to 

indicate to customers that a particular bill is either Net (Exchange) Price or Carcass (Delta) Price. 

Once operational, Navy’s ERP will replace the Navy ICP’s DLSS/MILSBILLS billing system with a 

DLMS based system. Since DLMS does not utilize a Sales Price Condition Code, Navy will use a 

combination of Stock Exchange Code and Type of Bill Code to indicate on the bill that the price 

charged is either Standard, Net or Carcass price. The Defense Automated Address System (DAAS) 

will convert Navy DLMS bills back to DLSS/MILSBILLS format for any Navy customers unable to 
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accept DLMS formats. 

(d) Revise DLMS Supplements and DAASC Mappings for 810L as follows:

Item 

# 

Location Revision to 

810L, Logistics Bill 

Reason Federal 

Update 

1. DLMS 

Introductor

y Note: 

Added ADC 332 to DLMS Introductory 

note 8.

- ADC 332, Intra-Navy Exchange Price 

Billing for Depot Level Repairables 

(MILSBILLS/Finance) 

To identify DLMS 

changes included in 

the DS 

No Update 

Required 

2. 2/LQ01/310 Modify qualifier “SEC” with the following 

DLMS Note:

SEC Stock Exchange Code 

DLMS Note: Use to identify the Exchange 

Pricing Indicator for intra-Army and intraNavy transactions to identify that the 

Customer and NIIN on the transaction are 

Exchange Pricing relevant. An ANSI data 

maintenance request has been prepared to 

establish a new data element 1270 code 

qualifier assignment for Exchange Pricing 

Indicator. When applicable, cite code value 

EP (Exchange Pricing). Refer to ADC 274 

and 332. 

A data maintenance action was approved in 

version 6010. The approved code/name is 

"EPI – Exchange Pricing Indicator".

Adds Navy use of 

SEC qualifier for 

exchange pricing 

 

No Update 

Required 

DLSS/DLMS Mapping 

Field Name DLSS 

Position 

Conditions Revision to 810L 

Mapping 

810L 

Position/L

oop 

Exchange Pricing 

Indicator 

None If rp 1-3 = FA1, FA2, 

FD1 or FD2 AND 

If rp 30 = A, C, W, N, 

V, R AND 

If rp 60-61 = DB, EP, 

RB, or SC 

LQ01 = SEC 

LQ02 = EP 

2/LQ/310 

Recipient of Billing 7 If rp 30 = N, V, R 

AND 

If rp 1-3 = FA1 or 

FA2 and rp 7 = B 

LQ01 = 54 

LQ02 = EP 

LQ01 = 54 

2/LM/310 
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 If rp 1-3 = FA1 and 

rp 7 = X 

If rp 1-3 = FA2 and 

rp 7 = X 

If rp 1-3 = FD1 or 

FD2 and rp 7 = B 

LQ02 =DB 

LQ01 = 54 

LQ02 =RB 

LQ01 = 54 

LQ02 =SC 

5. REASON FOR CHANGE: Allows Navy to continue billing for Carcass Tracking under 

DLMS with indicators currently used in MILS for creating financial transactions.

6. ADVANTAGES AND DISADVANTAGES: 

a. Advantages: Supports billing for Navy Carcass Tracking under DLMS in a mixed 

DLMS/MILS environment.

b. Disadvantages: None

7. IMPACT/IMPLEMENTATION: 

a. Impacts: 

(1) Update appropriate documentation. 

(2) Revise DAAS DLMS to DLSS mapping. 

b. Implementation: Phase I of Navy ERP is currently planned for implementation in Feb 

2010.